Low Carbon Intensity Premium Products
CNX’s low carbon intensity premium product efforts are rooted in the Company’s extensive legacy asset base and innovative tradition. They currently represent what CNX views as a unique set of market opportunities in the areas of environmental attributes, proprietary technology, and derivative product development.
Environmental Attributes
CNX actively explores potential pathways to develop and quantify environmental attributes under various programs. The environmental attributes that we generate and sell can include items such as (but are not limited to): carbon credits, air quality credits, renewable or alternative energy credits, methane capture credits, methane performance certificates, emission reductions, offsets and/or allowances.
Proprietary Technology
CNX is actively pursuing the commercialization of internally developed proprietary technologies that seek to reduce both cost and emissions during various natural gas development phases.
Derivative Products
CNX believes that using natural gas as a sustainable fuel source for high-emitting economic sectors like transportation, manufacturing, and other industrial processes could dramatically reduce emissions footprints in those sectors while creating new vertical markets for compressed natural gas (CNG) and liquefied natural gas (LNG) and help fast-track the implementation of downstream products such as hydrogen, sustainable aviation fuel and ammonia.
PROCESS INNOVATION
AutoSepSM Technologies
CNX and Deep Well Services (DWS) announced a joint venture in 2024 to launch AutoSepSM Technologies, a new oilfield service company providing step change improvement to conventional flowback operations. The new entity will benefit from the technological development capabilities of CNX and the service quality standard that DWS provides to the industry. As a standalone company operated by DWS, AutoSepSM Technologies will have the flexibility and autonomy to provide an automated flowback system for modern, high rate, and erosive unconventional shale wells. The new, highly compact system can be deployed in a fraction of the time and requires less labor, while reducing costs, improving safety, and lowering the environmental impact associated with conventional flowback operations.
AutoSepSM’s Automated Control Units (ACU), allow for a fully sealed flowback that effectively eliminates methane emissions, including that of sand trap blowdowns. This is considered to be the market’s first readily available solution for capturing methane vapors, including during simultaneous operations. The market potential for this product solution across domestic and international oil and gas basins is significant. Each year 20,000 wells are flowed back in the United States, and 60,000 wells are flowed back globally. DWS and CNX believe the technology is applicable for drill out operations as well and intend to market the technology to operators across domestic and international oil and gas basins that seek to lower capital costs while reducing emissions.
Electrification of the Drilling Rig
In 2019, CNX and Evolution Well Services—a strategic service partner—established the first long-term agreement for an electric fracturing fleet in the Appalachian Basin. Evolution, and its sister company Dynamis, remain key partners as we electrify the drilling operation. The Dynamis Hybrid Drilling system uses high-efficiency continuous duty natural gas reciprocating power generation on-site as well as battery storage technology to reduce emissions and fuel consumption while at the same time improve efficiencies. Gas processing and power distribution equipment will be trailer mounted, allowing for ease of transport and setup, and minimizing the use of cranes for equipment placement during rig moves.
Waste Heat Capture
Powering Operations with Emission-Free Energy
CNX compressor stations gather natural gas from nearby well and transmit it to points of use and distribution through the Appalachian region. The compressor engines generate heat, which can be harnessed with thermal technology and converted into onsite energy. That energy can then power other operations onsite with zero emissions.
In 2023, CNX and ICE Thermal Harvesting, LLC (ICE) partnered on a pilot project at CNX’s Dry Ridge compressor station in the West Virginia panhandle. ICE’s patented process converts engine exhaust heat produced at compression sites to supply ICE’s patented heat-to-power systems. The project nearly offset all grid power use at the site.
In 2024, the scope was expanded to collect heat from additional sources, thereby generating additional power. Once all work is complete, CNX expects power generation of approximately 1,300,000 kwh.
This initial pilot project phase will produce about half-a-megawatt of electricity and reduce 1,325 metric tons of CO2 annually, scaling up to 4,000 metric tons annually through later phases. The emissions savings are equivalent to taking nearly 1,000 cars off the road for a year, according to EPA calculations.
Capturing waste heat from compressor stations enables CNX to generate locally-sourced, zero-emission power for our operations and further reduce overall emissions. Our initial pilot project with ICE makes good business and environmental sense — and it’s part of our Appalachia First vision to identify and deploy innovative technologies that drive operational efficiencies, environmental progress, and commercial excellence.
CNX is actively pursuing waste heat capture development at other CNX sites.
Product Innovation
NuBlu Energy ZeroHP CNG and Clean mLNG
CNX is teaming with NuBlu Energy to unveil ZeroHP CNG and Clean mLNG, that represent step change in the scale and efficiency at which compressed natural gas (CNG) and micro-scale liquefied natural gas (LNG) can be produced, all while materially lowering the cost and carbon footprint of both products.
ZeroHP CNG redefines CNG by eliminating the need for mechanical compressors. Rather than relying on conventional mechanical compression, ZeroHP CNG exploits high gas pressures found naturally deep in shale formations (geobaric energy). ZeroHP CNG represents a paradigm shift in compressed natural gas production, offering unparalleled advantages over traditional methods by drastically reducing capital and operating costs, environmental footprint, required maintenance, and trailer fill time. ZeroHP CNG is capable of filling the largest virtual pipeline trailers in approximately one hour without the need for refrigeration. This patent-pending approach opens new possibilities for decentralized CNG production, positioning ZeroHP CNG as an ideal solution for meeting the growing demand for clean, affordable energy sources.
The Clean mLNG system is a micro-scale LNG liquefaction solution that leverages both geobaric energy and NuBlu’s proven methane-only refrigeration technology, mLNG. Leveraging cutting-edge processes and patent-pending technologies, Clean mLNG achieves cost and environmental impact efficiencies exceeding those of traditional mega-scale LNG processes. This represents a significant milestone in the industry, enabling the cost-effective production of small-scale LNG without compromising performance and providing a path to zero Scope 1 and 2 upstream emissions.
Leveraging advanced processes and proprietary technologies, NuBlu and CNX aim to drive a transition toward a more sustainable future in the CNG and LNG space. Products manufactured from these systems can displace conventional, foreign-sourced liquid fuels with a local, cleaner-burning, more cost-effective option.
FORCE ENVIRONMENTAL SOLUTIONS CNG-POWERED TRUCK
In 2023, the first 100% compressed natural gas (CNG) water hauling tanker unit went into service for CNX by way of partnership with FORCE Environmental Solutions, expanding the use of clean fuels in the Appalachian region.
Recognized as a feasible, low-cost alternative to diesel, CNG engines emit 30% less carbon dioxide, 90% less NOx, and 42% fewer sulfur oxide (SOx) emissions1, while reducing costs by 50% compared to traditional fuels. CNG engines are a natural fit for large fleets like trucks and busses due to their torque and hauling capabilities.
The initiative demonstrates the benefits of our “produce it here, use it here” strategy, which reduces CNX’s global supply chain risk while investing in the local economy. Using natural gas—an abundant, lower emissions fuel—from the Marcellus and Utica shales is the logical approach.
1.R&D GREET® 2023 Model, https://greet.anl.gov/ The Greenhouse gases, Regulated Emissions, and Energy use in Technologies Model
Geothermal
A Stable, Low Emission Energy Frontier
Geothermal resources represent an exciting opportunity for consistent energy supply with low lifecycle emissions. This energy can be used for electricity generation, heating and/or cooling. The heat flow is continually generated by the earth’s interior, making it a more consistent source of alternative energy compared to sources like wind and solar that are dependent on weather conditions.
The CNX team develops projects that complement our asset base and creates opportunities to deploy existing technologies not previously utilized in Appalachia, at scale. In 2023, CNX conducted extensive analysis to evaluate how modern geothermal energy—a renewable energy source—can complement CNX assets.
CNX is participating in a Pennsylvania-based pilot project location that began in 2023 with a collaboration supported by state and federal partners. Initial stratigraphic and modeling work has been completed and is informing the next steps of the process.
As one of the premiere energy exploration and production companies in the world, CNX is positioned favorably to harness geothermal energy and continues to explore opportunities for this promising frontier.
